Search Climate Insights Directory

The document discusses the challenges of decarbonizing existing buildings in the US and details RMI's work in Massachusetts using 'lighthouse projects' to create a scalable, equitable market for energy retrofits in affordable housing.

The U.S. transportation sector, responsible for nearly one third of national greenhouse gas emissions, is undergoing decarbonization through a combination of federal strategies, such as the U.S. National Blueprint for Transportation Decarbonization, and significant funding from the IIJA and Inflation Reduction Act. While progress is evident in the buildout of EV and hydrogen corridors and the growth of clean energy manufacturing jobs, the document argues that the U.S. is not yet on track to meet its goal of cutting all transportation greenhouse gas emissions by 2050. Regional efforts are concentrated in the West Coast (hydrogen and EV corridors), Midwest (battery manufacturing and freight networks), Gulf Coast (low-emissions shipping and hydrogen trucking), and East Coast (EV manufacturing and I-95 freight corridors). To accelerate progress, the document recommends a federal clean fuel standard, improved inter-agency coordination, and stronger community engagement.

The Clean Air Task Force (CATF) advises the US Treasury to distinguish between different Climate Smart Agriculture (CSA) practices when calculating carbon intensity (CI) scores under section 45Z. CATF argues that no-till farming and planting cover crops should not be credited because their effects on soil organic carbon (SOC) are difficult to measure empirically, take years to occur, and are reversible. In contrast, the use of enhanced efficiency nitrogen fertilizer may remain creditable as its emissions reductions occur within a single growing season and are more easily quantified. Additionally, CATF asserts that section 45Z does not permit SOC offsets because the required methodology, such as CORSIA, does not credit SOC improvements due to permanence concerns. The document suggests that harvesting cover crops for permanent underground sequestration should be treated as a separate, potentially creditable practice if robust verification is in place.

Indonesia's electricity sector remains heavily dependent on fossil fuels, with coal contributing 62% of generation in 2023. The report highlights a risk of stranded assets if new coal plants are built, as improving existing plant efficiency could lead to a 42 TWh surplus by 2030. It advocates for the Just Energy Transition Partnership (JETP) targets, which aim for a 44% renewable share by 2030. Specifically, the report argues for shifting renewable investments toward coal-producing provinces like East Kalimantan, South Kalimantan, and South Sumatra to mitigate job losses and economic decline, estimating that expanding solar projects in these areas could create 96,000 high-skilled jobs and attract $9.4 billion USD in investment.

The report examines Indonesia's energy transition, highlighting the risk of stranded assets due to coal overcapacity and the potential for renewable energy to revitalize coal-dependent provinces. It compares the RUPTL 2021-2030 and JETP frameworks, suggesting that replacing planned coal capacity with solar power in regions like East Kalimantan, South Kalimantan, and South Sumatra could create 96,000 high-skilled jobs and attract $9.4 billion in investment.

The report compares a pathway aligned with U.S. climate commitments against the energy and climate provisions of Project 2025. It finds that Continued Climate Leadership would lead to significant emissions reductions, job growth, and public health improvements, while Project 2025 would increase emissions, reduce GDP, and cause additional premature deaths.

The report analyzes the mining sector's impact on greenhouse gas emissions and its essential role in providing minerals for energy transition technologies. It emphasizes the need for strategic management to reduce emissions and prevent biodiversity loss and pollution, while highlighting the specific challenge of fugitive methane emissions from coal mining. The study uses case studies from Chile, Indonesia, and South Africa to provide policy recommendations and explores the industry's use of voluntary disclosures and transparency initiatives to manage its carbon footprint.

RMI supported Washington State in creating the Transportation Electrification Strategy (TES) using a two-stage analytical approach. The first stage assessed EV adoption pathways and identified that reaching the 2030 goal of 100 percent zero-emissions passenger vehicle sales would result in 13.6 MMT of on-road emissions, which exceeds the target of less than 10 MMT CO2e needed to meet broader climate goals. To bridge this gap, the TES recommends point-of-sale rebates and low-cost leasing programs. The second stage utilized the GridUp tool's hyper-local travel data to forecast EV load and identify where grid investments are necessary to prevent bottlenecks and maintain affordability during the transition to electrified transportation and heating.

Mexico's sustainable debt market reached a cumulative GSS+ volume of USD 55.7bn by the end of 2023, with sustainability bonds emerging as the dominant instrument. The market is heavily driven by the public sector, particularly the federal government and development banks, though private corporate participation is increasing. The report highlights the introduction of the Mexican Sustainable Taxonomy in March 2023 as a key development to guide investments. While Mexico is a global leader in sustainability bond volume, challenges remain in the sustainability-linked bond (SLB) market regarding the credibility of GHG targets. Key opportunities for growth are identified in renewable energy, sustainable agriculture, and low-carbon construction, supported by trends such as US nearshoring.

Mexico's sustainable debt market (VSS+) reached a cumulative volume of $55.7 billion by the end of 2023, with $38.3 billion aligned with Climate Bonds methodology. The market is dominated by sustainable bonds (72% of aligned volume) and heavily driven by the public sector, including sovereign emissions and development banks like Banobras. While Mexico led the world in sustainable bond issuance in 2023, challenges remain in the alignment of sustainability-linked bonds (SLBs) due to a lack of greenhouse gas (GHG) targets. The report highlights the 2023 launch of the Sustainable Taxonomy of Mexico as a key tool for guiding future investments in sectors such as renewable energy, sustainable construction, and agriculture.

The study finds that the ABC Recuperação credit line has had modest effects on pasture recovery, with most areas remaining unchanged and severely degraded pastures showing little improvement. While some pasture was converted to agriculture, the program's contribution to the Plano ABC goal of recovering 15 million hectares by 2020 was estimated at a maximum of 2.5%. Technical assistance was identified as a critical factor for success, particularly for severely degraded areas. The report also notes that some areas were deforested immediately prior to receiving credit, suggesting a need for better ex-ante monitoring and the integration of risk management tools.

The report examines the transition from internal combustion engine (ICE) trucks to zero-emission trucks (ZETs) in India, focusing on the potential for job displacement across direct, indirect, and induced employment categories. It projects ZET sales through 2040 under business-as-usual and ambitious scenarios and highlights the vulnerability of informal sector mechanics and truck-stop service providers. To mitigate these risks, the authors propose the establishment of a Just Transition Fund for India (JTFI) to finance reskilling and alternative livelihoods.

The document argues that South Africa's food system, specifically the beef sector, is characterized by high environmental impacts and deep socio-economic inequalities. It finds that current industry responses—focused on technological efficiency and market growth—fail to address the precarious conditions of farm workers, the concentration of power in large-scale feedlots, and the urgent need to reduce methane emissions. The authors recommend a transformative approach to adaptation and mitigation that prioritizes labor reform, gender justice, and the right to food over industrial expansion.

The document outlines a SAVi assessment for a proposed MRT system in Pampanga, Philippines, consisting of four bus rapid transit (BRT) lines and one light rail transit (LRT) line. It employs system dynamics modelling and causal loop diagrams to compare a 'no action' scenario against the MRT implementation, identifying potential co-benefits such as reduced CO2 emissions, decreased traffic congestion, and increased regional connectivity. The assessment provides a detailed set of assumptions and data sources for calculating capital costs, operational revenues, and avoided costs related to health, accidents, and fuel use.

The policy brief contends that despite France's diplomatic leadership and the Paris Place's 2019 commitment to phase out coal, French financial institutions continue to fund coal development. It highlights the severe health and climate impacts of coal, the failure of voluntary commitments—specifically among four major French banks—and calls for a national legal ban on financial services for coal projects to ensure a credible transition.

The briefing analyzes how the Energy Permitting Reform Act of 2024 (EPRA) and FERC Order 1920 could accelerate US transmission expansion to 2–4 TW-miles per year. By enabling the deployment of clean energy to meet growing electricity demand and displace fossil fuel generation, these provisions are estimated to reduce cumulative US grid emissions by 6.5 Gt CO2e through 2050. The analysis focuses on four key EPRA sections addressing interregional planning, FERC permitting, categorical exclusions, and legal decision timelines.

The document argues that Sweden's transition to fossil-free transport risks disproportionately harming approximately 40% of the population, particularly those in low-density areas with high car dependency and lower incomes. It proposes a four-part policy framework focusing on structural infrastructure investments, group-specific support, addressing non-transport vulnerabilities, and continuous evaluation to ensure social acceptance and equity.

The document analyzes South Africa's transition from a coal-dependent economy, highlighting the tension between transformative visions of social justice and narrower, market-based decarbonization efforts. It identifies significant challenges, including high regional economic dependence in Mpumalanga, a massive funding gap for the Just Energy Transition Investment Plan (JET IP), and institutional failures such as state capture and fragmented governance. The report examines the divergent perspectives of trade unions, national and local governments, state-owned utility Eskom, and civil society, while emphasizing the need for procedural justice and bottom-up engagement to ensure the transition does not entrench existing inequalities.

The US electric school bus (ESB) market is expanding rapidly, with 12,167 commitments across 1,514 districts as of June 2024. While upfront costs remain three to four times higher than diesel buses, federal programs like the EPA's Clean School Bus Program and the Inflation Reduction Act provide significant subsidies. The market now offers 26 models across Types A, C, and D, with nameplate ranges between 100 and 300 miles. The transition involves complex integration of high-voltage vehicle systems, charging hardware (Level 2 and Level 3 DCFC), and charge management software to optimize costs and grid impact. Emerging solutions like repowering existing diesel buses offer a lower-cost alternative, typically ranging from $110,000 to $180,000.

The EU Carbon Border Adjustment Mechanism (CBAM) is a regulatory tool designed to prevent 'carbon leakage' by applying a carbon price to specific imported goods, matching the price paid by EU producers under the EU Emissions Trading System (EU ETS). The mechanism covers cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. It involves a transitional monitoring period starting in October 2023, followed by a definitive phase-in in 2026. Importers must purchase and surrender non-tradeable certificates based on the embedded emissions of their goods. The document highlights the necessity of phasing out free ETS allowances to ensure the CBAM's effectiveness and discusses the potential for reinvesting CBAM revenues into climate mitigation in developing economies.